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7/180209/P5/16683 W:\H\DR-REGS\16683.docx 09/02/2018 4:15:00 PM
A P P E N D I X
Gaming, Liquor and Cannabis Act
GAMING AND LIQUOR AMENDMENT REGULATION
1 The Gaming and Liquor Regulation (AR 143/96) is amended
by this Regulation.
2 The title is repealed and the following is substituted:
GAMING, LIQUOR AND CANNABIS REGULATION
3 Section 1(1)(i) is amended by adding “or cannabis” after
“liquor”.
4 Section 10(2) is repealed and the following is substituted:
(2) A person fails to pass a records check if the person
(a) has at any time been charged with or convicted of
(i) an offence under the Criminal Code (Canada), the
Excise Act (Canada), the Food and Drugs Act
(Canada) or the Income Tax Act (Canada),
(ii) an offence under the Controlled Drugs and
Substances Act (Canada), other than under section
4(1) of that Act for possession of any substance
included in Schedule II to that Act, or
(iii) an offence under a foreign Act or regulation that, in
the opinion of the board, is substantially similar to an
offence referred to in subclause (i) or (ii)
and, in the opinion of the board, the offence is sufficiently
serious that it may detract from the integrity with which
gaming activities or provincial lotteries are to be
conducted in Alberta or may be detrimental to the orderly
or lawful conduct of activities authorized by a liquor
licence, a cannabis licence or a registration relating to
liquor or cannabis, or
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(b) has, within the 5 years prior to the submission of the
application, been serving a term of imprisonment of 3
years or more.
5 Section 13 is amended by striking out “or” at the end of
clause (c), adding “or” at the end of clause (d) and adding the
following after clause (d):
(e) would be a detriment to the lawful import, purchase, sale,
provision, transport, possession, storage or use of
cannabis.
6 Section 14 is amended
(a) in subsection (1) by striking out “facility licence or
liquor licence” and substituting “facility licence, liquor
licence or cannabis licence”;
(b) in subsection (3) by striking out “facility licensee or
liquor licensee” and substituting “facility licensee, liquor
licensee or cannabis licensee”.
7 Section 15 is amended
(a) in subsection (1) by striking out “facility licence or
liquor licence” and substituting “facility licence, liquor
licence or cannabis licence”;
(b) by repealing subsection (2) and substituting the
following:
(2) No retail liquor store licence or cannabis store licence
may be issued unless the board is satisfied that, in addition to
meeting the requirements in the board’s policies, the premises
to be licensed meets
(a) in the case of a retail liquor store licence, the
requirements set out in Part 1 of Schedule 2, and
(b) in the case of a cannabis store licence, the
requirements set out in Part 2 of Schedule 2.
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(c) by repealing subsection (3) and substituting the
following:
(3) Every facility licensee, liquor licensee and cannabis
licensee must ensure that, during the term of the licence, the
licensed facility or licensed premises meets
(a) the requirements for that type of facility or premises
as established in the board’s policies,
(b) in the case of a retail liquor store licence, the
requirements referred to in clause (a) and the
requirements set out in Part 1 of Schedule 2, and
. (c) in the case of a cannabis licence, the requirements
referred to in clause (a) and the requirements set out
in Part 2 of Schedule 2.
8 Section 16 is amended by striking out “91.1 or 94” and
substituting “91.1, 94 or 123(1) or (2)”.
9 Section 29 is amended
(a) in subsection (1) by adding “or registration” after
“specified in the licence”;
(b) in subsection (2) by striking out “period other than that
described in subsection (1)” and substituting “term other
than one or 2 years”;
10 Section 75(2) is amended by striking out “period other than
that described in subsection (1)” and substituting “term other than
one or 2 years”.
11 Section 92(1)(a) is amended by adding “Part 1 of” before
“Schedule 3”.
12 The heading before section 100.1 is repealed.
13 The following is added before Schedule 1:
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Part 4 Cannabis
Division 1 Cannabis Licences
Cannabis store licence
104(1) A cannabis store licence is established as a class of
cannabis licence.
(2) A cannabis store licence authorizes the licensee
(a) to purchase cannabis from the Commission, and
(b) to possess, store and sell the cannabis in the licensed
premises.
Restrictions on location of licensed premises
105(1) In this section,
(a) “band council” means the council of the band as defined
in the Indian Act (Canada);
(b) “Indian reserve” means a reserve as defined in the Indian
Act (Canada);
(c) “land use bylaw” has the meaning given to it in Part 17 of
the Municipal Government Act;
(d) “Metis settlement” and “settlement council” have the
meanings given to them in the Metis Settlements Act;
(e) “provincial health care facility” means an approved
hospital as defined in the Hospitals Act;
(f) “school” means a school as defined in the School Act.
(2) The board may not issue a cannabis store licence in respect of
any premises located
(a) in a municipality, unless a development permit has been
issued under the Municipal Government Act for the
proposed use of the premises as described in the
application for the cannabis licence,
(b) on an Indian reserve, except in accordance with an
applicable band council bylaw or the band council’s
approval, or
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(c) on land within a Metis settlement area, except in
accordance with an applicable settlement council bylaw or
the settlement council’s approval.
(3) For the purposes of sections 640(7), 642(5) and 687(3) of the
Municipal Government Act, a premises described in a cannabis
licence may not have any part of an exterior wall that is located
within 100 metres of
(a) a provincial health care facility or a boundary of the
parcel of land on which the facility is located,
(b) a building containing a school or a boundary of a parcel of
land on which the building is located, or
(c) a boundary of a parcel of land that is designated as school
reserve or municipal and school reserve under the
Municipal Government Act.
(4) Despite subsection (2)(a), on application by a municipality the
board may, if the board considers it appropriate to do so, issue a
cannabis store licence in respect of a premises that meets the
requirements of subsection (3) but for which a new municipal
development permit is not required under the Municipal
Government Act.
(5) A municipality may, in a land use bylaw, expressly vary the
distance set by subsection (3) and set a different distance that is
applicable to one or more of the types of properties referred to in
subsection (3)(a) to (c), and where a municipality has done so,
subsection (3) does not apply to a premises to the extent the
variation in the land use bylaw is applicable to it.
(6) On application by a municipality that has not by bylaw varied a
a distance set by subsection (3), the board may, in writing, if the
board considers it appropriate to do so, vary the distance set by that
subsection and set a different distance that is applicable to one or
more of the types of properties referred to in subsection (3)(a) to
(c) in relation to a specified premises that is the subject of a
cannabis licence application.
(7) Where the board has issued a variance under subsection (6),
subsection (3)
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(a) does not apply to the specified premises to the extent the
variance is applicable to it, and
(b) for greater certainty, does not operate to bar the issuance
of a development permit under the Municipal Government
Act in respect of the premises.
Restriction on issuance of licences
106 Before issuing a licence the board must be satisfied that its
issuance will not result in more than 15% of the total number of
issued cannabis licences being held by
(a) one person, or
(b) a group of persons in circumstances where, in the opinion
of the board, more than 15% of the total number of issued
cannabis licences are or would likely be subject to
common control in any material respect.
Division 2 Registration
Authority of registered representatives
107 A person who is registered as a representative of a cannabis
supplier is authorized to act as a representative of that supplier in
the sale of the supplier’s cannabis.
Representation
108(1) No person may be registered as a representative of a
cannabis supplier unless the board is satisfied that the cannabis
supplier has agreed to the person representing them.
Division 3 General
Licence conditions
109(1) For the purposes of section 90.07(5)(a) of the Act, a
cannabis licensee must, in accordance with the terms of the licence,
(a) maintain a system that tracks cannabis inventory
perpetually and that
(i) includes a point-of-sale tracking system,
(ii) enables the tracking of cannabis inventory both by
product and by lot number, and
(iii) is backed up weekly, with backup data being stored
in a secure manner,
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(b) perform full inventory counts of cannabis and report any
variations identified during the inventory count to the
Commission within 10 business days of the inventory,
(c) identify any outdated, recalled, damaged, deteriorated,
mislabelled or adulterated cannabis and keep it separate
from other cannabis inventory until it has been disposed
of in accordance with the terms of the licence, and
(d) keep records of all inventory counts and sales and
supporting documentation for at least 6 years and keep the
records and supporting documentation for the 2 most
recent years on the licensed premises.
(2) For the purposes of section 90.07(5)(b) of the Act, a cannabis
licensee must, in accordance with the terms of the licence,
(a) secure the perimeter of the licensed premises in a manner
that prevents unauthorized access,
(b) use a camera system to record activity inside the premises
and at all points of entry,
(c) use a monitored alarm system that detects unauthorized
attempts to enter the licensed premises, unauthorized
movements within the premises and any attempts to
tamper with the alarm system,
(d) ensure that any cannabis and cannabis accessories
displayed during hours of operation of the licensed
premises are displayed in a locked showcase accessible
only by authorized employees of the cannabis licensee,
(e) ensure that any cannabis removed from display for
viewing or sale is in sealed packaging or an approved
display container in accordance with the policies of the
board,
(f) ensure that any cannabis and cannabis accessories not
displayed in accordance with clause (d) are stored in a
locked storeroom accessible only by authorized
employees of the cannabis licensee, and
(g) ensure that after the hours of operation of the licensed
premises all cannabis is stored in a locked storeroom
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accessible only by authorized employees of the cannabis
licensee.
Term of licence or registration
110(1) The term of a cannabis licence or a registration referred to
in this Part is one year or 2 years, as specified in the licence or
registration, unless subsection (2) applies.
(2) The board may issue a licence to an applicant or register an
applicant for a term other than one or 2 years, where the board
considers it appropriate.
(3) A person who holds a cannabis licence having a term of more
than one year or who is registered under this Part for a term of
more than one year must pay by the date specified by the board an
additional fee for the portion of the term that exceeds one year.
Automatic cancellation on sale, assignment or transfer
111(1) Neither the holder of a cannabis licence nor a person
registered under this Part may sell, assign or transfer the licence or
registration.
(2) If the holder of a cannabis licence or a person registered under
this Part sells, assigns or transfers the licence or registration, the
licence or registration is cancelled.
Automatic cancellation on change in control
112 Where
(a) there is a sale, assignment or transfer of a portion of the
business under which the activities authorized by a
cannabis licence or a registration under this Part are
carried out, and
(b) the sale, assignment or transfer results in a change in
control of the business,
the licence or registration is cancelled.
Change in ownership but not control
113(1) A proposed sale, assignment or transfer of a portion of a
business
(a) that is a sole proprietorship, a partnership or a corporation
that is not a distributing corporation as defined in the
Business Corporations Act, and
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(b) under which the activities authorized by a cannabis
licence or a registration under this Part are carried out
must be reported to the Commission by the licensee or registrant
and must be approved by the board prior to the effective date of the
sale, assignment or transfer.
(2) A sale, assignment or transfer of 5% or more of a business
(a) that is a distributing corporation as defined in the Business
Corporations Act, and
(b) under which the activities authorized by a cannabis
licence or a registration under this Part are carried out
must be reported to the Commission by the licensee or registrant
within 10 business days after the effective date of the sale,
assignment or transfer and must be approved by the board.
(3) The board may, in respect of a sale, assignment or transfer
requiring its approval under this section,
(a) approve it without conditions,
(b) approve it subject to conditions,
(c) approve it subject to the variation or rescission of existing
conditions, or
(d) refuse to approve it.
(4) Where the board refuses to approve a sale, assignment or
transfer under subsection (3)(d) after the effective date of the sale,
assignment or transfer, the board may treat the licensee or
registrant as ineligible to hold a licence or to be registered and
make a decision under section 92 of the Act.
Change in financial interest
114 Where, after a cannabis licence is issued, the licensee intends
that a person acquire a financial interest in the licensee, in the
licensee’s business or in the premises to which the licence relates,
in a manner other than by way of a sale, assignment or transfer, the
licensee must report the financial interest to the Commission within
10 business days of the interest being acquired.
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Licence cancellation on dispossession of business
115(1) If a cannabis licensee, through bankruptcy or operation of
law, becomes dispossessed of the business under which the
activities authorized by the licence are carried out, the licence is
cancelled.
(2) If subsection (1) applies, the board may issue a temporary
licence to a person to carry on the activities authorized by the
cancelled licence, subject to any conditions set out in the temporary
licence.
(3) A temporary licence is valid for 3 months or until the cancelled
licence would have expired if subsection (1) did not apply,
whichever is later.
(4) A person who holds a temporary licence may, while the
temporary licence is in force, apply for a new licence.
(5) A person who holds a temporary licence may apply to the
Commission for permission to sell the person’s cannabis inventory
back to the Commission.
Death of licensee
116(1) When a cannabis licensee who is an individual dies, the
licence continues in force until the expiry date of the licence unless
it is suspended or cancelled earlier.
(2) While the licence is in force, the licensee is
(a) a person specified by the board, or
(b) the trustee, executor or administrator who is entitled to
administer the estate of the deceased if the board does not
specify a person.
Division 4 Prohibited Relationships
Definition of cannabis representative
117 In this Division, “cannabis representative” means a person
who is required to be registered under section 90.13 of the Act.
Cannabis suppliers
118(1) No cannabis supplier or officer, director or employee of a
cannabis supplier and no cannabis representative may directly or
indirectly make or offer to make a loan or advance or give or offer
to give money, a rebate, a concession or any thing of value to a
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cannabis licensee, to an employee or agent of that licensee or to a
cannabis representative.
(2) Subsection (1) does not apply where
(a) the cannabis supplier has a financial interest in the
cannabis licensee as its subsidiary and the loan, money or
other thing is given or offered in the normal course of
financing the subsidiary, and
(b) each corporation is operated as a separate business in
accordance with section 90.09 of the Act and section 128.
Cannabis licensees
119(1) No cannabis licensee may buy, receive as a gift, rent or
borrow any furniture, furnishings, storage equipment, fixtures,
decorations, signs, supplies or other equipment from a cannabis
supplier or a cannabis representative.
(2) No cannabis licensee or employee or agent of a cannabis
licensee and no cannabis representative may
(a) directly or indirectly borrow or receive as a gift from any
cannabis supplier or cannabis representative money, an
advance of money or any thing of value, or
(b) request or accept a rebate or concession from a cannabis
supplier or a cannabis representative.
(3) Subsection (2)(a) does not apply where
(a) the cannabis supplier is a corporation that has a financial
interest in the cannabis licensee as its subsidiary and the
loan, money or other thing is given or offered in the
normal course of financing the subsidiary, and
(b) each corporation is operated as a separate business in
accordance with section 90.09 of the Act and section 128.
Other business operations
120 A licensee who holds a cannabis store licence and who
operates or is involved in another business may not
(a) offer discounts on purchases in one business based on
purchases in the other business, or
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(b) operate a customer loyalty program in one business which
recognizes purchases made in the other business.
Division 5 Miscellaneous
Hours of cannabis sale
121(1) Subject to any bylaws referred to in subsection (2) and any
conditions affecting the licence, a cannabis licensee may sell
cannabis in the licensed premises only during the hours specified in
Part 2 of Schedule 3.
(2) A municipality may pass bylaws reducing the hours of sale
specified in Part 2 of Schedule 3 and where a municipality has
done so, the reduced hours apply to all licensed premises in the
municipality.
Posting of licences
122 A cannabis licensee must post in a prominent place in the
licensed premises
(a) the cannabis licence, and
(b) any document or information that the board or
Commission requires to be posted.
No use of cannabis in licensed premises
123(1) No person may smoke, vape or otherwise use cannabis in
licensed premises.
(2) No cannabis licensee may permit any person to smoke, vape or
otherwise use cannabis in the licensed premises.
Minimum price of cannabis
124(1) The board may set the minimum price at which cannabis,
or a class of cannabis, may be sold by a cannabis licensee.
(2) Where the board sets a minimum price for cannabis or a class
of cannabis, no person may sell cannabis at a price lower than the
minimum set by the board.
Maximum amount of cannabis
125(1) In this section, “dried cannabis” has the same meaning as
in the Cannabis Act (Canada).
(2) No cannabis licensee or department or agency designated
under section 90.08(2)(a) of the Act may sell or provide, in a single
transaction, cannabis of any class listed in column 1 of Schedule 3
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to the Cannabis Act (Canada) in an amount that, when determined
in accordance with that Schedule, exceeds the equivalent of 30
grams of dried cannabis.
Qualifications, conditions and training requirements for employees of cannabis licensees
126(1) A cannabis licensee may not employ any person to sell
cannabis or to assist the licensee in the conduct or management of a
licensed activity unless the person
(a) is an adult,
(b) has successfully completed the training requirements set
by the Commission, and
(c) has passed a records check to the satisfaction of the board.
(2) For the purposes of subsection (1)(c), a person does not pass a
records check if the person
(a) has at any time been charged with or convicted of
(i) an offence under the Criminal Code (Canada), the
Excise Act (Canada) or the Food and Drug Act
(Canada),
(ii) an offence under the Controlled Drugs and
Substances Act (Canada), other than under section
4(1) of that Act for possession of any substance
included in Schedule II to that Act, or
(iii) an offence under a foreign Act or regulation that, in
the opinion of the board, is substantially similar to an
offence referred to in subclause (i) or (ii)
and, in the opinion of the board, the offence is sufficiently
serious that it may detract from the orderly or lawful
conduct of activities authorized by a cannabis licence,
(b) has, within the 5 years prior to being employed by the
cannabis licensee, been serving a term of imprisonment of
3 years or more, or
(c) in the opinion of the board, has committed any act that is
contrary to the public interest or that detracts from the
integrity with which cannabis-related activities are to be
conducted in Alberta.
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(3) The board may set training requirements for current or
prospective employees of cannabis licensees or for any class of
such employees.
Fees and deposits re background checks
127(1) This section applies in respect of the following:
(a) cannabis licences;
(b) registrations that authorize a person to act as the
representative of a cannabis supplier in the sale of the
supplier’s cannabis.
(2) An applicant for a licence or registration referred to in
subsection (1) must pay a fee for background checks conducted by
the Commission in respect of the applicant, the applicant’s
employees and associates and persons with connections to the
applicant.
(3) An applicant for a licence or registration referred to in
subsection (1) must submit to the Commission with the application
a deposit in the amount determined by the board to be used to pay
the fee for background checks.
(4) The holder of a licence or registration referred to in subsection
(1) must pay a fee for background checks conducted by the
Commission, if any, during the term of the licence or registration in
respect of the licensee or registrant, the employees and associates
of the licensee or registrant and persons with connections to the
licensee or registrant.
(5) If required by the Commission, the holder of a licence or
registration referred to in subsection (1) must submit to the
Commission a deposit in the amount determined by the board to be
used to pay the fee for background checks.
(6) If a deposit has been submitted that exceeds the fee for
background checks, the Commission must refund the surplus.
(7) The fee payable for a background check is the actual cost of
conducting the background check.
Separate business
128 For the purposes of section 90.09(1)(a) and (2) of the Act, a
business under which activities authorized by a cannabis licence
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are carried out is to be considered separate from another business
of the applicant if
(a) the business under which the licensed activities are carried
out is operated by a corporation that does not operate the
other business,
(b) no person who operates the business has any employee
who is also employed by the other business, unless each
business treats the employee as its own employee for the
purposes of payroll and the reporting, remittance of source
deductions and other requirements under the Income Tax
Act (Canada),
(c) each of the businesses maintains separate financial records
from the other and from any other business of the
applicant,
(d) the licensed premises from which the business is operated
complies with Part 2 of Schedule 2 in respect of any
licensed premises from which the other business is
operated, and
(e) each of the businesses meets the other criteria, if any,
established by the board for the purposes of this section.
Prescribed distance for no smoking areas
129 No person may smoke or vape cannabis within 5 metres of an
area or place listed in section 90.28(c)(i) to (vi) of the Act.
Warehouse
130(1) The board may authorize the storage of cannabis in a
warehouse subject to any conditions established by the board.
(2) Cannabis stored in a warehouse under subsection (1) may be
distributed from that warehouse in accordance with conditions
established by the board.
14 Schedule 1 is amended by adding the following after
section 11:
12 Application for cannabis store licence
$400
13 Cannabis store licence $700
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14 Cannabis representative registration
$200
15 Schedule 2 is amended
(a) by striking out the following:
Conditions Governing Retail Liquor Store Premises
and substituting the following:
Part 1 Conditions Governing Retail Liquor Store Premises
(b) in sections 1 and 2 by striking out “this Schedule” and
substituting “this Part”;
(c) by adding the following after section 6:
Part 2 Conditions Governing Cannabis Store Premises
7 In this Part,
(a) “building envelope” means the outer perimeter of the building in which an existing business is located and includes space rented, leased, subleased, sold or otherwise provided to others in the same building;
(b) “existing business” means a retail, wholesale or similar business owned or operated by an applicant for a cannabis store licence at the time of the application and includes any other business located in the same building envelope that is associated with or owned or controlled in whole or in part by the applicant.
8 A cannabis store
(a) must be in premises that meet the conditions of this Part,
(b) must be located in a permanent facility
(i) that is a freestanding building that does not contain another business, or
(ii) that is in a building in which there are other businesses,
and
(c) if it is in a building envelope where there are other businesses, the cannabis store must
(i) have its own entrance and exit separate from the exit and entrance for any other business,
(ii) have a common wall between the area to be occupied by the cannabis store and the area occupied by or to
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be occupied by any other business that is a solid floor to ceiling wall constructed of materials other than glass or transparent materials,
(iii) have its own receiving and storage area separate from any other business,
(iv) not have any point-of-sale checkouts that are also used for another business, and
(v) have signage at each point of entry prohibiting minors from entering.
9 There may not be any access
(a) between the public areas of a cannabis store premises and the receiving, storage or public areas of another business premises, or
(b) between the receiving or storage areas of a cannabis store premises and the receiving, storage or public areas of another business premises.
16 Schedule 3 is amended
(a) by striking out the following:
Maximum Hours that Liquor may be Sold or Provided
and substituting the following:
Part 1 Maximum Hours that Liquor may be Sold or Provided
(b) by adding the following after section 4:
Part 2 Maximum Hours that Cannabis may be Sold
Cannabis Licence Hours
5 Cannabis store licence 10:00 a.m. - 2:00 a.m.
17(1) The following provisions of the following Regulations
are amended by striking out “Gaming and Liquor Act” wherever
it occurs and substituting “Gaming, Liquor and Cannabis Act”:
Regulation Provision
Beverage Container Recycling Regulation (AR 101/97)
section 1(1)(j)
Exemption Regulation (AR 125/99) section 2(c.1)
Food Regulation (AR 31/2006) section 2(2)(i)
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Justice of the Peace Regulation (AR 6/99)
section 3(1)(h) and (ee)
Procedures Regulation (AR 63/2017) section 2(g) and Parts 12 and 13 of the Schedule
18 The following provisions of the following Regulations are
amended by striking out “Gaming and Liquor Regulation”
wherever it occurs and substituting “Gaming, Liquor and
Cannabis Regulation”:
Regulation Provision
Exemption Regulation (AR 125/99) section 5(a)
Justice of the Peace Regulation (AR 6/99) section 3(1)(ee)
Procedures Regulation (AR 63/2017) Part 13 of the Schedule
19 This Regulation comes into force on the coming into force
of section 27 of An Act to Control and Regulate Cannabis.